March 8, 2021, 2:24 pm EST
Stimulus Money For Retailers
Senators approved a $1.9 trillion stimulus check for COVID-19 in order to strengthen the US economy. Stock markets react positively today with DJIA up more than 500 points.
However, the winners focus on airliners (travel) and retailers (shopping).
- Airliners: JBLU, AAL, SAVE, LUV, UAL
- Retailers: HBI, CPRI, FL, BIG, BBBY, DKS, HOME, BURL, JWN, ROST, TJX, DLTR, GPS
It should be easy to guess where people will spend their money when they received the checks.
The other major trend is on the downside dragged by technology. Nasdaq is still in the red color (-1%) due to the faded leaders: TSLA, ZM, AAPL, SQ, NVDA, etc.
Here we can Dow is making a new high and Nasdaq keeps looking for the bottom. In this situation, market participants should re-check portfolio components to ensure they are in line with the expected performance mentioned above.
Our opinion is that a stimulus plan is a short-term boost to the markets. But the side effect of rising yield and inflation due to excess paper money and asset bubble is a big threat to the stock market for the longer term.